🤔 Cool Title, but what’s the news?
Just a week before the central bank’s monetary policy review, the State Bank of India (SBI) increased fixed deposits (FD) rates by 5-10 basis points (bps) for various tenors.
😕 Okay, but what does it mean?
The new rates will be applicable from November 28, 2018 and for FDs below Rs 1 crore.
Post this hike, FDs with a tenor of one year but less than two years will fetch 6.8 per cent up from 6.7 per cent – a hike of 10 bps. Similarly, the interest rate on 2-3 year FDs has been increased by 5 bps to 6.80 per cent from 6.75 per cent. In all cases, senior citizens will earn 50 bps higher.
🧐 Why should I care?
SBI last hiked FD rates in July where it increased interest rates by 5-10 bps for various tenors.
Banks, both public and private sector ones, have been increasing interest rates on FDs through the year. The likes of HDFC Bank, Axis Bank, Punjab National Bank, Bank of Baroda, IndusInd Bank and so on all have increased FD rates during the year.
This comes just before the Central Bank’s review of the monetary policy is due.
Source: Economic Times